Anyone who needs a substantial amount of coverage has probably thought it’s far to expensive. Just thinking about owning a million dollars in coverage seems like a lot.
But it’s more common than ever.
Million dollar life insurance rates have dropped over the past few years, and you might be surprised at how affordable it really is. If you are young and healthy, it’s extremely cheap.
If you are curious about million dollar life insurance rates, we’ll breakdown the different premium ranges you can expect, depending on what age group you fall into, a 30 year old is going to have an easier time being approved for coverage rather than an 80 year old needing life insurance.
Million Dollar Life Insurance Rates
Needing a seven figure life insurance policy might feel a little intimidating, but you’d be surprised how fast the money could be spent if your family requires a high income, or you carry large amounts of debt.
When you’re considering how much life insurance to purchase in the first place, here are some items to include in your calculation:
- Income Replacement
- Estate Planning
A mortgage can be small or jumbo in size, but a portion or all of it’s remaining amount should be considered in your life insurance policy if you have heirs who will be staking ownership. The proceeds could be used to pay off the debt, or used to make payments over a longer period of time if it suits the situation better.
Debts which need to be prepared for with life insurance are what we call transferable debts; these are debts which pass on to someone else when you die. If someone co-signed a loan, for example, they would now be the responsible party in repaying the obligation. If you’re thinking of a million dollar or even multi-million dollar life insurance policy, it might be because you have large business loans, significant medical bills, or other types of personal loans which could transfer as well.
Burial is pretty self-explanatory, as it pertains to the last expenses strictly in regards to funeral costs, funeral preparation costs, grave stones, and last medical bills.
Income replace might actually be the single most common reason someone would be exploring million dollar life insurance rates. Because the primary use of life insurance is to replace income, this makes sense. It’s somewhat standard to see someone replace 7-10x their income, so obviously this could account for the bulk of a policy’s face amount. If someone has a six figure income, and they want to replace this to their family in the event of their death, you’re already talking about a $1,000,000 policy.
Larger estates also require significant life insurance policies to hedge against large estate taxes due when it settles. Million dollar life insurance rates have a big impact here, because the estate needs to leverage it’s dollars now to have the greatest impact later. The higher the rates, the less the multiplier.
Sample Million Dollar Life Insurance Premiums
Here’s a nice and simple breakdown of what a healthy female could expect to pay for a $1,000,000 life insurance policy, broken down for different age groups. For the purpose of this breakdown, we’re using a pretty standard 20-year policy.
- 25 Year Old: $340/year
- 30 Year Old: $350/year
- 35 Year Old: $386/year
- 40 Year Old: $540/year
- 45 Year Old: $872/year
- 50 Year Old: $1,260/year
- 55 Year Old: $2,050/year
- 65 Year Old: $3,310/year
You can see how incredibly cheap and affordable it is in the younger years, but it increases in premium pretty drastic when you breach the 50’s. The good thing about buying at the younger ages is having the ability to lock in your payment for 240 months, or 20 years. This creates a nice stable policy you can count on, with no surprises, regardless of health changes.
Remember, these were for a non-smoker female in great health, so not everyone will qualify at these rates. Million dollar life insurance rates are dependent on health just as much as age, so if your age is faltering, you may have to adjust your budget, or adjust your policy. Never extend yourself further than what is manageable.
If you or someone you know is looking for million dollar life insurance rates, we’ll be happy to help. We are independent agents here at The Life Insurance Blog, so we shop your rates from over 50 different, reputable companies to be positive you are paying the least amount possible. Our goal is to save you money, and save you the hassle. Get a quote today to find out if you can afford the policy you really need.